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Facts: A Philippine resident decedent dies, leaving: (i) a residential house in Baguio valued at ₱6,400,000; (ii) a bank deposit of ₱2,100,000; (iii) a motor vehicle valued at ₱550,000; (iv) a life insurance policy on the decedent's life with proceeds of ₱900,000 payable to the decedent's estate; (v) shares of stock in a domestic corporation valued at ₱1,200,000. Burial expenses incurred and paid by the estate amount to ₱180,000. The decedent's surviving spouse and two children are the heirs. Assume the applicable estate tax exemption is ₱5,000,000. Question:   (a)State the controlling doctrine governing estate tax and identify the basis of the levy. (b)Distinguish gross estate from net estate and indicate which items are included in gross estate and which are deductible from gross estate. (c)Apply the facts: determine the gross estate, the deductions, and the net estate. Conclude whether estate tax would apply on this estate and why.